6 points Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Sales eBook Hint Ask References Variable expenses Contribution margin Fixed expenses Net operating income Required: Percent of Amount $ 139,000 Sales 100% 55,600 83,400 40 60% 23,000 $ 60,400 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 16% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 16% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 16% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 16% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 16% increase in unit sales. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).) Net operating income increases by < Required 1 % Required 3 > 2. Using the degree of operating leverage, estimate the impact on net operating income of a 16% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 16% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Construct a new contribution format income statement for the company assuming a 16% increase in unit sales. Engberg Company Contribution Income Statement Sales Variable expenses Contribution margin Amount Percent of Sales 100% 40% 0 60 % Fixed expenses Net operating income $ 0 < Required 2 Required 3 >